Software to be biggest tech spend in 2013: Forrester

Software to be biggest tech spend in 2013: Forrester

Australian CIOs should be cautious about their budgets "until it becomes clear that China is on a solid growth path", says analyst

The biggest investment CIOs are making this year is on custom-built software, applications and middleware, which will reach US$542 billion globally, according to Forrester Research’s latest forecast.

The research firm forecasts an increase in total global tech spend from US$2.023 trillion in 2012 to US$2.069 trillion in 2013, and is projected to grow to US$2.18 trillion in 2014.

Software purchases this year account for 26 per cent of the total spend, followed by computer equipment at 20 per cent (US$404 billion), IT outsourcing and hardware maintenance at about 19 per cent (US$411 billion), IT consulting and integration services at 19 per cent (US$389 billion) and communications equipment at 16 per cent (US$322 billion).

In Australia, tech spending is expected to grow moderately from 2.5 per cent in 2013 to 2.8 per cent in 2014.

However, with the China’s tech market growth projected to slow in 2013 to less than 7 per cent, Forrester analyst Andrew Bartels said Australian CIOs should be cautious about their budgets.

"CIOs in Australia should also be watching how much they expand their tech budgets until it becomes clear that China — the biggest market for Australia's natural resource exports — is on a solid growth path."

“A sharp drop in the value of the yen against the US dollar — a side effect or, perhaps, an intended main result of Abenomics — means that the Asia Pacific tech market will actually decline by 3.2 per cent when measured US dollars.”

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